Gold ticks higher as dollar slips on Fed pause bets

Spot gold rose 0.1 percent to $1,981.79 per ounce as of 0306 GMT, after rising 2.2 percent last week. US gold futures were steady at $1,984.40.

Gold prices edged higher on November 20, as the dollar extended its slide after recent US economic data boosted bets that the Federal Reserve was done with its interest rate hikes.

Spot gold rose 0.1 percent to $1,981.79 per ounce as of 0306 GMT, after rising 2.2 percent last week. US gold futures were steady at $1,984.40.

”We’ve seen a pretty significant narrative shift over the last week or so in the markets on the Fed policy and when the Fed will cut interest rates first and how aggressively it will be cutting rates,” said Kyle Rodda, a financial market analyst at Capital.com.

"On the flip side, still seeing a fairly significant divergence in terms of where gold is trading at the moment with real yields… we’re going to need much weaker data from here to really kind of catalyze that move above $2,000 per ounce".

Data pointing to a slowing jobs market in the US and a weaker-than-expected consumer inflation report last week lifted hopes that the Fed could begin easing monetary conditions sooner than expected.

The dollar slipped 0.2 percent to a more than 2-1/2 month low against its rivals, making gold less expensive for other currency holders.

Traders now widely expect the Fed to leave rates unchanged at its December 12-13 policy meeting, according to the CME FedWatch tool.

Lower rates exert downward pressure on the dollar and bond yields, enhancing the appeal of non-yielding bullion.

Holdings of SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, rose 1.49 percent to 883.43 tonnes on November 17.

Investors now look forward to minutes from the US central bank’s last meeting later this week for more clarity on its interest rate path.

Spot silver dipped 0.4 percent to $23.64 per ounce, while platinum rose 0.3 percent to $901.88 and palladium gained 0.3 percent to $1,056.41 per ounce.